Needham & Company Maintains a 'Hold' on Discovery (DISCA); 3Q11 – No Changes to Advertising Estimates

Needham & Company maintains a 'Hold' on Discovery Communications (NASDAQ: DISCA).

Needham analyst says, "DISCA is expected to release 3Q11 earnings in the first half of November. We maintain our FY11 revenue and EPS estimates. Specifically, we maintain our 3Q11 revenue estimate of $996mm (up 8% y/y), and Operating EPS estimate of $0.56 (up 49% y/y). In addition, we maintain 4Q11 revenue of $1.096B (up 8% y/y) and Operating EPS of $0.68 (up 43% y/y), as well as FY12 estimates of revenue of $4.429B (up 8% y/y), and Operating EPS of $2.79 (up 19% y/y)."

"Political ad spending in 2H10 that won’t be repeated in 2H11 will make the reported advertising comparisons difficult in the second half of 2011. Excluding political. we believe that the current ad market remains solid, up low-to-mid-singledigits, with no change in earnings trajectory over the past 3 months despite growing weakness in Europe."

For more ratings news on Discovery Communications click here and for the rating history of Discovery Communications click here.

Shares of Discovery Communications closed at $36.73 yesterday.

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